Biogen exercises option to increase stake in biosimilars JV

As Samsung Bioepis continues to advance its pipeline of biosimilar drugs, its US minority partner Biogen (Nasdaq: BIIB) has announced its intention to increase its equity stake in the joint venture company.

Biogen said it has exercised its option to purchase additional shares of Samsung Bioepis, a joint venture established in 2012 by South Korea’s Samsung BioLogics (KRX: 207940) and the US biotech major.

Under the terms of the 2012 joint venture agreement, Biogen will pay Samsung BioLogics around $700 million for the option shares, increasing Biogen’s ownership in Samsung Bioepis from about 5.4% to approximately 49.9%. The completion of this share purchase is subject to certain regulatory closing conditions and is expected to close in the second half of 2018.  The exact share purchase price will depend on the timing of the closing and foreign currency exchange rates at that time.